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NEW YORK, Feb. 5, 2016 /CNW/ -- Daniel A. Pollack, Special Master presiding over settlement negotiations between the Republic of Argentina and its "holdout" Bondholders issued the following statement today:

In my capacity as Special Master, I have met over the past week with high-level Argentine government officials and senior-most principals of the leading institutional "holdout" Bondholders as well as attorneys for individual Bondholders. The negotiations were intense, but civil, and I am pleased to report that enormous progress has been made. Argentina today has released a proposal to settle with and pay the many defaulted Bondholders with cases in the Federal Court in New York pending before Hon. Thomas P. Griesa. The payments, if made, will total approximately $6.5 billion. The proposal is subject to two important conditions: 1. approval by the Argentine Congress, and 2. lifting of the Injunction that Judge Griesa issued several years ago.

This litigation has gone on for nearly 15 years since the original Argentine default of 2001, and the proposal by Argentina is an historic breakthrough which, if the conditions mentioned above are met, will allow Argentina to return to the global financial markets to raise much needed capital. I have personally spoken today by telephone to President Mauricio Macri and, earlier in the day, to Minister of the Economy Alfonso Prat-Gay. They both stand solidly behind this proposal. Both have shown courage and flexibility in stepping up to and dealing with this long-festering problem which was not of their making. I also wish to acknowledge the tireless and meaningful contributions of their team on the ground in New York City, led by Secretary of Finance, Luis Caputo, and Vice Chief of the Cabinet, Mario Quintana. Others on their team worked around the clock to facilitate the negotiations, and there were many senior ministers in Buenos Aires who, although not physically present, were important to the process, in particular the Chief of the Cabinet, Marcos Pena.

On the "holdout" Bondholders side, all of the senior principals involved worked diligently to resolve differences between their firms and Argentina. Two of the six leading "holdouts" succeeded in doing so, and have signed Agreements in Principle with Argentina; four of the six have yet to reach agreement. It is my strong hope that, with continued negotiations those firms, too, will be able to resolve their differences and reach Agreements in Principle with Argentina. All concerned on the "holdout" Bondholders side are working constructively to that end.

The events of this week and today were an important step in resolving Argentina's debt crisis; more remains to be done. No further statement will be made tonight.